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Microfinance Environment in Uzbekistan: Analysis of Supply and Demand

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  • Nargiza Alimukhamedova

    (CERGE-EI)

Abstract

The paper describes the microfinance environment in Uzbekistan, with an emphasis on two types of non-bank microfinance institutions – Credit Unions and Microcredit Organizations. The specific nature of these institutions provides new evidence of the commercially oriented microcredit model and SME lending, which is an emerging trend in mainstream microfinance. The paper offers two important contributions. On the supply side of microcredits, we analyse the determinants of initial placement of these MFIs in districts of Uzbekistan. We find that MFIs follow general economic principles when choosing the location for establishment. On the demand side, we analyse the actual margins of excess demand for microcredits by considering only the pool of eligible applicants. We find that the total probability of microcredit approval is on average only 0.5, which implies that the actual margins of untapped market could be just half of that projected when the narrow definition of eligible applicants is taken into account.

Suggested Citation

  • Nargiza Alimukhamedova, 2014. "Microfinance Environment in Uzbekistan: Analysis of Supply and Demand," Working Papers 344, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    • Handle: RePEc:ost:wpaper:344
    as

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    References listed on IDEAS

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    6. Annabel Vanroose & Bert D’Espallier, 2009. "Microfinance and Financial Sector Development," Working Papers CEB 09-040.RS, ULB -- Universite Libre de Bruxelles.
    7. Annabel Vanroose, 2008. "What macro factors make microfinance institutions reach out?," Working Papers CEB 08-036.RS, ULB -- Universite Libre de Bruxelles.
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    10. Annabel Vanroose, 2008. "Which macro factors make microfinance institutions reach out?," ULB Institutional Repository 2013/174948, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Nargiza Alimukhamedova & Randall Filer & Jan Hanousek, 2017. "Themed Issue: Cash Transfers and Microfinance," Development Policy Review, Overseas Development Institute, vol. 35(5), pages 645-657, September.
    2. Karel Janda & Tran Van Quang & Pavel Zetek, 2015. "Faktory ovlivňující zapojení žen v mikrofinancích [The Factors Influencing the Participation of Women in Microfinance]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(3), pages 363-381.
    3. Nargiza Alimukhamedova & Randall Filer & Jan Hanousek, 2015. "The Importance of Geographic Access for the Impact of Microfinance," CESifo Working Paper Series 5433, CESifo.

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    More about this item

    Keywords

    microcredit; microfinance institutions; credit unions;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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